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Warner Bros. Discovery may have recently hinted at increasing subscription fees for its streaming platforms HBO Max and Discovery+. The suggestion comes months after the company announced it is merging both products into one streaming service next year.
The media and entertainment conglomerate’s Chief Financial Officer Gunnar Wiedenfels was in attendance at the Goldman Sachs Communacopia Technology Conference on Tuesday. Wiedenfels said at the event that HBO Max and Discovery+ are “fundamentally underpriced,” which seemingly hints at the company’s plans to increase subscription prices in the near future.
Wiedenfels took note of HBO/HBO Max’s massive success in the recently held Creative Arts, and Primetime Emmys, showing that its platform has quality shows to offer its subscribers. Overall, the company garnered 38 Emmys won spread across several shows, including “Euphoria,” “Succession,” and “The White Lotus.”
Warner Bros. Discovery has yet to make a straightforward announcement about changing the prices for HBO Max and Discovery+. But the comment on the services being underpriced considering what they offer is a likely indication of price changes in the future.
Wiedenfels also explained that, while HBO Max and Discovery+ are not perfect, the streaming platforms complement one another. HBO Max is known for its library of flagship shows, while Discovery+ focuses more on reality TV content. The CFO said these contrasting qualities, once merged, could help the company avoid losing subscribers when HBO Max does not have new shows and movies to offer.
The merging of HBO Max and Discovery+ was first announced in March. Then, Warner Bros. Discovery confirmed last month that the streaming services would be combined by mid-2023 in the United States, while other regions will follow at a later time.
Pricing plans for the merged HBO Max-Discovery+ product are still unclear. Currently, HBO Max plans start at $9.99 monthly for its ad-supported tier and $14.99 monthly for the ad-free plan. Discovery+ monthly subscription costs $4.99 with ads and $6.99 without commercials.
Photo by Maciej Drążkiewicz on Unsplash
